Recotron Supporting Kmart24 Jan, 2002 By: Hive News
Consumer electronics company Recoton said today its insurance should cover about a third of Kmart's outstanding debt and Recotron's management believes it will get more when Kmart finalizes its settlement with creditors.
Recoton, owed nearly $7 million in accounts receivable from Kmart, said its insurance policy should cover approximately $2 million, leaving a net exposure of approximately $4.9 million. Sales to Kmart represented about 3 percent of Recoton's total sales for 2001.
"We support Kmart during these difficult times and are hopeful that it will successfully address its financial and operational challenges," said Recoton chairman, president and CEO Robert L. Borchardt. "We believe that this will not have a material impact on Recoton's long term profitability."
Recoton's consumer electronics accessories for audio, video, camcorder and multimedia/computer, home office products including headphones and speakers high fidelity loudspeakers, home theater speakers and accessories for video and computer games. Among the labels under the Recotron shingle are Discwasher, InterAct, Jensen, Parsec, Recoton, Game Shark and Performance brands.